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Charity trustee role and responsibilities

Overview of trustees’duties and responsibilities.

Overview

The role of charity trustees is to run the charity. They are responsible for the general control and management of the charity. Charity trustees may have a different title according to how the charity is constituted, e.g. members of the management committee or board of management; governors; or directors; but in all cases they have ultimate responsibility for directing the affairs of a charity, and ensuring that it is solvent, well-run, and delivers the charitable outcomes for the benefit of the public for which it has been set up.

Duty and responsibilities

Charity trustees are part of the governing body of the charity. Being a charity trustee gives you an opportunity to use your skills, experience and knowledge for the benefit of charity and can also offer you ways to develop new skills.

The duties and responsibilities of charity trustees can be summarised into 3 key areas:

Ensuring compliance

Trustees must:

Ensure that the charity complies with charity law, and with the requirements of the Charity Commission as regulator; in particular ensure that the charity prepares reports on what it has achieved and Annual Returns and accounts as required by law.

Ensure that the charity does not breach any of the requirements or rules set out in its governing document and that it remains true to the charitable purpose and objects set out there.

Comply with the requirements of other legislation and other regulators (if any) which govern the activities of the charity.

Act with integrity and avoid any personal conflicts of interest or misuse of charity funds or assets.

Duty of prudence

Trustees must:

Ensure that the charity is and will remain solvent.

Use charitable funds and assets reasonably, and only in furtherance of the charity's objects.

Avoid undertaking activities that might place the charity's endowment, funds, assets or reputation at undue risk.

Take special care when investing the funds of the charity, or borrowing funds for the charity to use.

Duty of care

Trustees must:

Use reasonable care and skill in their work as trustees, using their personal skills and experience as needed to ensure that the charity is well-run and efficient.

Consider getting external professional advice on all matters where there may be material risk to the charity, or where the trustees may be in breach of their duties.

According to charity law, trustees cannot receive direct or indirect benefit from a charity unless authorised by the charity’s governing document, legislation or the Charity Commission. The key principle behind trusteeship is that it is an unpaid role for the benefit of the charity and society at large. However, trustees are entitled to claim expenses associated with their role as trustees such as travel expenses associated with trustee business, including attendance at meetings.

Time commitment varies according to the size and activities of the charity. As a general rule, smaller charities will usually involve trustees in both operational and strategic issues, whereas trustees of larger charities will focus more on strategic matters. So, before you accept an appointment as a trustee, it might be worth asking for more information on:

the charity’s objectives, plans and challenges;

the leadership, governance structure and effectiveness of the trustee board;

responsibilities, duties and time commitment as a trustee;

support provided to trustees by the charity; and

risks and liabilities associated with trusteeship.

New Philanthropy Capital’s guidance on The Benefits of Trusteeship provides further guidance on the considerations and value of trusteeship.

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Charities play an important part in delivering public services at national, regional and local levels. Along with other public service providers they are under increasing pressure to find new ways of delivering good outcomes in a way that works within increasingly constrained budgets.

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Trustees are ultimately responsible for their charity and the law grants them considerable discretion and wide ranging powers. Sonia Antonioni looks at the important matter of appointing a new trustee to a charity.